24 Jul USCIS Increases Investment and Revenue for Foreign Entrepreneurs
Key Points:
- USCIS has announced an increase in the investment and revenue thresholds for the International Entrepreneur Rule program.
- These thresholds are updated every three years.
- The changes will take effect on October 1, 2024.
Summary:
On July 24, 2024, the U.S. Citizenship and Immigration Services (USCIS) announced an increase in the investment and revenue thresholds for foreign startup founders applying for a visa under the International Entrepreneur Rule (IER). This program, established during the Obama administration, allows foreign entrepreneurs to start businesses in the United States.
New Investment and Revenue Thresholds:
Starting October 1, 2024, foreign entrepreneurs must show that their company has received:
- An investment of at least $311,071 (previously $264,147)
- At least $124,429 (previously $105,659) in government awards or grants or
- If the startup doesn’t fully meet the above criteria, provide other strong and reliable evidence that shows its significant potential for fast growth and job creation.
For a renewal application, the founder must show their startup has received:
- At least $622,142 (previously $528,293) in investments
- Created at least five jobs or
- Reached an annual revenue in the U.S. of at least $622,142 (previously $528,293).
Requirements for Investments:
USCIS also updated the requirements for the sources of the startup’s investments. The investor must have a track record of making significant investments in successful startups within the past five years.
To qualify, the individual or organization must have:
- Invested at least $746,571 (previously $633,952) in startups for equity or similar stakes.
- Additionally, after their investment, at least two of those startups must have each created at least five jobs or generated $622,142 (previously $528,293) in revenue with an average annual growth of at least 20%.
Details of the IER Program:
The International Entrepreneur Rule (IER) was established in January 2017 to allow foreign entrepreneurs to stay in the U.S. to grow their businesses. In 2018, the Trump administration sought to suspend the rule, citing concerns over its implementation. However, a court ruling later required DHS to begin accepting applications under the rule. The Biden administration has since reaffirmed support for the IER, praising the policy for allowing international entrepreneurs to contribute to the U.S. economy.
Since FY 2021, USCIS has received 94 applications: 26 cases approved, 28 rejected, and 40 cases pending or withdrawn.
Key Criteria to Qualify:
- Entrepreneurs must be involved with a U.S. startup formed within the past five years.
- Entrepreneurs can be either living abroad or already in the United States.
- Startup entities must have been established in the U.S. within the past five years.
- Up to three entrepreneurs per startup can be eligible.
- Spouses of entrepreneurs can apply for work authorization, but children cannot.
Under the rule, entrepreneurs can receive an initial stay of up to 2.5 years to oversee and grow their company in the U.S. An extension of up to 2.5 additional years may be granted if the startup continues to provide a significant public benefit, demonstrated by substantial increases in capital investment, revenue, or job creation.
For more information, Boundless has put together a detailed guide on the International Entrepreneur Rule.
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Disclaimer: This information is for informational purposes only and does not constitute legal advice. Consult with an immigration attorney for specific legal guidance.
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